Too much of a good thing?
Elise Fleischaker
Someone asked me an interesting question at the end of last year, which sounded like “can you have too much of a good thing?”. This person works for a large organization that implements Agile methods in some manner, and their concern is that one of the stakeholders is getting in their face a bit. Can you have too much business stakeholder involvement? Most people seem to be fighting to get involvement from the business stakeholder side, not getting too much
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CFTC’s Issuance of Foreign Boards of Trade Permits
Elise Fleischaker
The CFTC announced on October 31st, 2016 that they issued Orders of Registration to the following Foreign Boards of Trade (FBOT): Eurex CME Europe Limited ICE Futures Europe The London Metal Exchange London Stock Exchange We congratulate these exchanges on their newly acquired Orders of Registration. These Orders of Registration will allow FBOT members and other participants located in the U.S. direct access to the order entry and matching engine for these five exchanges. The CFTC issued these Orders in
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How Spoofing Works & Why It is Illegal
Elise Fleischaker
The law of supply and demand is taught in every economics class. My children learned it in high school. It is simple to understand; yet it isn’t something we think about often. We don’t think about how it applies to our stock and commodity markets. The law of supply and demand is a theory that states that when something is in demand, and supply is lower than demand, then the price will rise. Conversely, when there is more supply than
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Trading Firms Beware: Those That House Spoofers Can Be Held Strictly Liable
Elise Fleischaker
In US tort law there is a rigid legal doctrine known as 'strict liability' which is frequently used by consumers to hold manufacturers of defective products legally responsible for any harm caused by their products.  Consumers who bought and used the product and were injured are able to file suit against the manufacturer and seek damages without having to prove that the manufacturer had reckless, negligent, or bad faith intent in producing the product (hence, the rigidity of the doctrine).
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Everything I know about project management I learned at Philmont
Elise Fleischaker
Over the summer I was lucky enough to visit BSA’s Philmont Scout Ranch in New Mexico for the second time. Philmont is a high adventure camp for the Boy Scouts (& young women in Venturing Crews) in the beautiful mountains of New Mexico. Participants usually go on a 12 day trek, carrying everything they need on their backs and restocking a couple of times on the way. Boy Scouts of America teaches the Patrol Method which is a way of
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Neurensic and Thompson Coburn LLP to host Disruptive Trading Practices Symposium
Elise Fleischaker
The algorithmic trading revolution has forever changed our capital markets, as a majority of trading on exchanges is now performed by high-speed computer programs. Today, many trading organizations are armed with powerful quantitative techniques such as big data analytics, signal processing and artificial intelligence.   Unfortunately, the tools used by regulatory and compliance teams typically lag far behind the technological capabilities that traders use every day. This phenomenon has created a perception that the markets are “rigged” or, at the
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Momentum Ignition: Arson for Financial Markets
Elise Fleischaker
ESMA has defined momentum ignition as a case of prohibited market manipulation. ICE Canada considers this to be disruptive, and so does the CME Group. One UK government report stated that momentum ignition will “induce algorithms to compete with other algorithms, can push prices away from fundamental values.”* This leads us to the question - what exactly is momentum ignition? And how do we detect that is has occurred so that compliance teams can surveill for this prohibited activity? An
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Scrumban as a Success
Elise Fleischaker
I have had the pleasure of watching several teams work with Agile methods and to try and promote the better dynamics and feedback we seek in something like Scrum and Kanban. At the moment I have the pleasure of a team embracing Scrumban. In  an earlier post I covered some of the ideas of Scrumban, a hybrid of Kanban and Scrum. To adopt the process, our team asked a couple of questions. What tools do we need? A short while
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I thought I was clever enough to not get caught
Elise Fleischaker
Since November 2015, our machine learning tool for detecting spoofing and market manipulation has been getting a lot of buzz. The company has a record of detecting market manipulation in listed derivatives based upon high profile cases. We put together an Artificial Intelligence (AI) tool that allowed compliance officers to quickly detect who was manipulating the markets and why. But computers don't really trade - they are programmed, just like our trade surveillance tool. Surely these computer programs looking at
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Why Front Running Traders Hurt Fair & Open Markets
Elise Fleischaker
Front Running (a.k.a. Trading Ahead) is the unethical practice of a trading based on information about a pending order or trade that someone else needs to make or will soon make.  Using this private information a front runner places an order in advance of another client for personal unwarranted profit. Typically this also disadvantages the person placing the other order. Recently Jon Ruggles was banned from trading on the CME Group exchanges and was fined $300,000.   Front Runner Scorecard
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